German industry faces job cuts amid energy policy hurdles
According to estimates presented by Stefan Wolf, president of the German employers' association Gesamtmetall, Germany's metal and electric sectors could significantly reduce employment in the coming years. What challenges are German companies facing?
In a conversation with deutschlandfunk.de, Stefan Wolf provided a detailed analysis of the situation in two key sectors to the German economy. According to his predictions, the metal and electric industry could lose up to 300,000 jobs over the next five years. This figure represents a significant percentage of the current workforce in this sector, highlighting the potential scale of structural changes.
Despite the pessimistic forecast regarding the number of jobs, Wolf also presented a more optimistic perspective on managing this reduction. The Gesamtmetall president pointed to the possibility of a smooth transition, mainly due to natural demographic changes. In the coming years, large age groups will retire, which could significantly mitigate the impact of the planned job reductions.
However, Wolf pointed out a paradoxical situation in the labour market. Some plants may face a labour shortage, which may lead to the need to increase the workload of remaining employees to maintain productivity at an appropriate level in the sector.
Energy challenges and expectations for the government
Wolf did not limit himself to employment issues. In the conversation, he also addressed energy policy, which he believes is crucial for the future of German industry. The Gesamtmetall president appealed to the future federal government, calling for implementing what he described as a "rational energy policy."
Wolf's criticism of the current energy policy focuses on two main aspects. First, he pointed to excessively high energy prices, which significantly burden companies in the metal and electric sectors. High energy costs can negatively affect the competitiveness of German companies in the global market, which, in the long term, may lead to further job reductions and potential relocation of production to countries with lower operating costs.
Germany's energy transition problem
The second point of criticism is the pace of renewable energy development. Wolf expressed dissatisfaction with what he considers too slow a pace in expanding renewable energy infrastructure in Germany. This issue is particularly significant in the context of the country's long-term energy strategy and its impact on the industrial sector.
It's worth noting that Wolf's call for a "rational energy policy" indicates the need to find a balance between ecological ambitions and the industry's economic needs. Germany, as a leader in environmentally friendly technologies, faces the challenge of maintaining this position while retaining its industry's competitiveness.
The position of the Gesamtmetall president should be considered in the broader context of Germany's energy transition (Energiewende). The country has set ambitious goals for reducing CO2 emissions and increasing the share of renewable energy in its energy mix. However, achieving these goals involves significant costs for the industry, which is reflected in the concerns expressed by sector representatives.
Wolf's forecasts for the future of employment in the metal and electric sectors and his call for a change in energy policy represent an important voice in the debate on the future of German industry. Finding a balance between environmental goals, industrial energy needs, and maintaining the economy's competitiveness will be one of the key challenges for the future federal government of Germany.
It's also important to note that the German metal and electric industry situation could have broader implications for the entire European economy. As the largest economy in the European Union, Germany plays a crucial role in shaping industrial and energy policy at the community level. Therefore, the changes and challenges facing the German industry could influence industrial policy direction across Europe.
Employment issues, energy policy, and competitiveness are closely interconnected, creating a complex picture of this key economic sector's future. Future policy decisions and the industry's adaptive strategies will be crucial for maintaining Germany's strong position as a leader in industrial production in Europe and worldwide.
Order crisis in the German industry
According to the latest data from the German Federal Statistical Office, orders in the German industry sharply declined in August. Compared to July, orders decreased by 5.8%, the largest drop since January this year. Experts had expected a much smaller decrease of only 2%. Such a significant drop deepens the crisis in this key sector of the German economy.
Significant decline in domestic orders
Particularly concerning is that domestic orders fell by as much as 10.9%. Foreign orders also decreased, albeit somewhat, at 2.2%. In the case of eurozone countries, the decline was 10.5%, while orders from other countries increased by 3.4%.
The German Ministry of Economy states that given the continued weak demand and deteriorating business sentiment, a significant economic upturn in the industrial sector in the second half of 2024 is unlikely. Experts emphasize that the current situation is a clear signal of a crisis.
